New York’s Role in Cryptocurrency Regulation
Adrienne Harris, the superintendent of the New York State Department of Financial Services (NYDFS), emphasized New York’s significant influence in the cryptocurrency sector, especially concerning the creation of regulations governing digital assets. Speaking on May 14 during the Consensus 2025 event in Toronto, Harris highlighted that the NYDFS frequently serves as a resource for federal regulators, with numerous Congressional members seeking insights into the agency’s regulatory framework and processes.
“With respect to federal regulation and legislation, we often find ourselves advising lawmakers on how they should approach regulatory issues,” Harris explained.
Shifts in Regulatory Approach
In her remarks, Harris acknowledged that the NYDFS, in the past, adopted an excessively stringent approach and struggled with limited resources. However, she confidently stated that under her leadership, the agency has shifted to a more balanced stance, being “tough but fair.” The digital currency oversight team has doubled in size since she took the reins in September 2021, following a background in education, nonprofits, and the private sector.
For businesses dealing with cryptocurrencies in New York, obtaining a BitLicense or a limited-purpose trust charter remains a requirement.
“We’ve introduced nine new regulatory guidelines, so while it’s not easy to secure a BitLicense or a trust charter, the rigorous scrutiny ensures that only compliant entities operate here,” Harris noted.
She pointed to the failures of high-profile firms like FTX, Voyager, and Celsius, which, unable to meet the NYDFS standards, went bankrupt in 2022, triggering a ripple effect across the crypto market and resulting in extensive legal challenges for their executives.
Future of Stablecoin Legislation
Harris expressed optimism about the future of stablecoin legislation, which has been a prominent topic among crypto advocates this year. Despite recent setbacks, including the withdrawal of Democratic support for the GENIUS Act due to concerns surrounding former President Trump’s involvement in cryptocurrency, she believes that Congress will unite to enact stablecoin regulations.
“For nearly three years, we have been collaborating with lawmakers on various iterations of crypto and stablecoin proposals,” she said, adding that New York officials have contributed to the legislative process by providing feedback on almost every version of these bills.
Commitment to Support Cryptocurrency Businesses
Harris affirmed the NYDFS’s commitment to being a supportive entity for cryptocurrency businesses in New York as the regulatory landscape evolves.
